End of road for Worli-Haji Ali sea link?

In a move that may signal the end of the city’s trysts with sea links, the Maharashtra State Road Development Corporation (MSRDC) board will ask the government to scrap the deal with Reliance Infrastructure to build the Worli-Haji Ali sea link.

In a move that may signal the end of the city’s trysts with sea links, the Maharashtra State Road Development Corporation (MSRDC) board will ask the government to scrap the deal with Reliance Infrastructure to build the Worli-Haji Ali sea link.

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The agency is likely to consider building the link on its own, though its precarious financial situation does not inspire much confidence.

The Worli-Haji Ali sea link project has been stalled for close to two years because of differences between MSRDC and Reliance. The parties have been accusing each other of reneging on the terms of contract.

On Thursday, the MSRDC board will formally endorse the proposal to scrap Reliance’s contract and return the Rs. 100 crore security deposit that the company had deposited with MSRDC.

The board-endorsed proposal will be then sent to the cabinet committee on infrastructure headed by the chief minister, which has the final say in the matter.

Importantly, chief minister Prithviraj Chavan himself is not very keen on sea links. In addition, MSRDC officials who met deputy chief minister Ajit Pawar on August 2 were reportedly asked to call off the deal.

MSRDC will rely largely on arbitrator retired justice BP Singh and attorney general of India GE Vahanvati’s suggestions for calling off the deal.

Earlier, Singh had blamed the state government for not fulfilling its obligation to make funds available by way of grants to the concessionaire.

As a way out, Vahanvati had suggested that both parties amicably terminate the agreement without any monetary liability on either side.

On Thursday, the MSRDC will also seek approval from the board to build the sea link on its own. However, there are serious questions on whether a new sea link can now be built by the MSRDC, which is reeling under a debt of Rs. 4,000 crore. It will have to raise an additional Rs. 2,400 crore for the project.

Though Reliance Infrastructure will get back its security deposit, it will lose out on the money it has spent on planning the project. Insiders claim that this amount could be over Rs. 120 crore.

However, both parties are keen to part ways amicably.